This regional shift story centers on South Africa’s Constitutional Court, which set aside the offshore exploration right held by Impact Africa and Shell along the Wild Coast. The ruling reinstated a High Court decision that found the permit and its two renewals unlawful.
Authorities originally granted the right to Impact Africa, renewed it in 2017 and 2021, and later transferred a 50 percent interest to Shell. The dispute began after Shell announced plans in 2021 for a three dimensional seismic survey, prompting challenges from Wild Coast communities, fishing interests, Greenpeace Africa, Natural Justice, and other groups.
The court cited inadequate consultation, failure to consider environmental and community interests, and noncompliance with South Africa’s Mineral and Petroleum Resources Development Act. A dissenting opinion favored another consultation process and pointed to company investment of about 1.1 billion rand, or 68 million dollars.
The decision blocks Shell and Impact Africa from using a third renewal process to revive the existing right. For offshore operators, it shows that South African exploration plans face close scrutiny of public consultation, environmental review, and community rights before capital can move into seismic work and drilling.